...The company's credit metrics remain strong due to sustained demand for its parts and maintenance, repair, and overhaul (MRO) services. AAR Corp.'s revenue and cash flow generation continue to improve relative to their 2020 lows but have yet to return to pre- pandemic levels. A slower-than-anticipated ramp-up in new aircraft deliveries has supported strong near-term demand for MRO services because companies are being forced to use older aircraft to service the increased air traffic. In an effort to minimize costs, commercial airlines have managed to defer much of the required maintenance for their engine portfolios and fleets by utilizing green time from parked assets. As they have exhausted this green time, their demand for MRO services and spare parts has risen, providing the company with a strong backlog. Available MRO capacity is limited; therefore, the part distribution exclusivity and MRO capabilities of providers have become increasingly important, validating management's efforts...
